The price of NEAR Protocol skyrocketed with a massive growth on the daily chart, which is still bullish! Dealing a significant blow to the bears who were expecting a decline. Further developments in NEAR are likely to hit short-sellers even harder, but some technical indicators suggest they still have a chance to take revenge.
NEAR Protocol: Explosive Growth!
In two days, the NEAR token rose in price by 40% and tested the $6 mark. At the time of writing, the token is trading around $5.57. This growth pleased many, but not the bears, who bet that the price would go down after three red candles in a row.
Over the course of the day, more than $2.23 million worth of short positions were liquidated, the first episode of this magnitude in nearly three months. At the same time, many indicators are signaling further price growth. The OI-weighted funding rate favors the coin and averages 0.0670%. Positive rates indicate bullish sentiment in the market.
In addition to speculation, online activity is also increasing. Amid the soaring price, the total value of assets locked in the NEAR protocol (TVL) increased by 22.5% (on a daily basis), from $155 million to $189 million. The growing popularity of the protocol amid increased demand is fueling this rally.
Potential Correction Ahead
Although the price has increased, it has not yet consolidated at new levels and is currently facing a barrier at $5.60. Its breakout is likely, but to continue its growth, it is more important to turn it into support.
Once this happens, the token will be on track for a yearly high of $6.50. Based on the above indicators, the bears may stay on the sidelines for a while to avoid further losses. This can serve as a catalyst for the asset and push it towards the resistance level.
However, the relative strength index (RSI) indicates that the asset is currently overbought. It is above 70 and is set to decline. If the indicator is above the neutral level of 50 but declining, then the bulls are likely losing ground after the recent rally. Such a sign may hint at an upcoming correction.
This has happened before, and such an outcome would keep the price around $5.60. The loss of this support level will deprive the bullish scenario of strength and send the cryptocurrency towards $4.85.
